Northrop Grumman on Wednesday reported increases in both revenue and net earnings for the second quarter of 2017.
Sales landed at $6.4 billion in sales in the quarter, up by 6 percent from $6 billion during the same quarter of last year. The defense-contracting giant also brought in earnings of $552 million, up by 7 percent from $517 million the same time last year.
The company reported second-quarter diluted earnings per share of $3.15, up by 11 percent from $2.85 on a year-over-year basis, as well as full-year earnings per share guidance of $12.10 to $12.40.
Northrop is a partner in National Security Technologies LLC, the management and operations contractor nearing the end of its tenure at the Department of Energy’s Nevada National Security Site. Its work at the site falls under the company’s Technology Services business segment, which reported sales of $1.2 billion in the quarter, down by 3 percent since last year due to “lower sales across the sector.” The division also reported operating income of $134 million, up from $131 million the same time last year.
“Lower volume for System Modernization and Services and Advanced Defense programs is principally due to the completion of several programs in 2016,” the company said in an earnings release.
The National Nuclear Security Administration last year awarded the new M&O contract at the Nevada site to another team, rescinding it days later and re-awarding it this May to a partnership of Honeywell, Jacobs, and Stoller Newport News Nuclear. The contract is worth up to $5 billion over a decade.
Two failed bidding teams then submitted bid protests with the Government Accountability Office, one of which was Nuclear Security & Technology, a partnership between Northrop, AECOM, and CH2M. Both protests were withdrawn earlier this month, and the new contractor has been instructed to resume transition activities on Aug. 1.
Northrop also serves as a support contractor for National Technology and Engineering Solutions of Sandia, a Honeywell subsidiary that on May 1 took over management of the Sandia National Laboratories. The prime contract is worth $2.6 billion each year for up to a decade.
